-Tokushima Wajiki Factory Achieves Zero Emission Status-
-Environmental Task Force Established for Office Divisions-

Otsuka Pharmaceutical Co., Ltd. (Head Office: Chiyoda-ku, Tokyo, Japan; President: Tatsuo Higuchi: Phone: +81-3-3292-0021) has announced the publication of the Environmental and Social Report 2006 in the end of October.

During fiscal 2005, the period covered in the Environmental and Social Report 2006, the Tokushima Wajiki Factory implemented comprehensive waste control measures to achieve Zero Emission status. Efforts to boost the recycling rate, including recycling plant and animal residues as feed and fertilizer, were successful, enabling the factory to meet the company's established criteria for Zero Emissions status. During fiscal 2005, the Tokushima Wajiki Factory generated 231 tons of waste material, 201 tons of emissions, and 176 tons of recycled materials, with one ton of waste relegated to landfill or otherwise disposed of.

At the end of fiscal 2005, the company reinforced its organization for addressing environmental issues on a company-wide basis by establishing an Environmental Task Force for Otsuka Pharmaceutical office divisions. Environmental seminars were held at branch offices, with the environmental operations promotion representative selected by each branch serving as liaison. Among efforts to reinforce environmental initiatives in company offices, all sales vehicles participated in a fuel-conserving 'Eco-Drive' movement, summer air conditioners were set at energy-saving temperatures, and environmental data was collected.

Efforts to mitigate global warming, to conserve resources and energy, and to control chemical substances also showed improvements during fiscal 2005. CO₂ emissions were reduced on a revenue unit basis by 17.6% compared to the fiscal 1990 total, though absolute volume increased by 1.9% compared to the same fiscal 1990 benchmark. Atmospheric emissions of the three major chemical substances in chlorine-based organic solvents were reduced by 46.1%, compared to the year 2000.

Aiming to serve as an environmental education tool for employees, the Environmental and Social Report 2006 continues the "Otsuka Academy of Environment" theme. Based on the belief that all initiatives begin with education, Otsuka Pharmaceutical will continue to work toward reducing the burden on the environment and communicating with local communities through the basic stance of setting clear, quantifiable numerical objectives, taking action, and tracking and reporting the results.

As a company committed to the betterment of human life, Otsuka Pharmaceutical is aware of our responsibility as a corporate citizen and in addition to compliance with legal standards, we will continue to pursue our business activities with proactive regard for their impact on the global environment and the local community.

• * Zero Emissions
  Zero Emissions is a program to minimize waste by reuse and recycling in an effort to bring the environmental burden of corporate activities as close as possible to zero. Otsuka Pharmaceuticals has defined Zero Emissions as follows:
  [Volume of recycled materials÷(waste volume+recycled materials)]×100%]
  Zero Emissions status has been achieved when the resulting value is 99% or higher.

Reference

Overview of the Environmental and Social Report 2006

• The Environmental and Social Report 2006 is an A4-sized, 40-page report, printed on paper produced from timber grown in responsibly managed forests certified by the Forest Stewardship Council, using 100% plant-based aroma-free ink containing no volatile organic solvents. The report was printed by a waterless printing method that minimizes the burden on the environment.
• Content
  1. Environmental Declaration; Editorial Policy; Highlights, etc.
  2. Environmental Management
  3. Environmental Performance
  4. Social Initiatives
  5. Company Profile、Editorial Postscript

Editorial Policy

• In the course of preparing the report, we focused on accuracy of information and ease of understanding. In principle, this report covers only initiatives and results that lend themselves to the establishment and subsequent tracking of concrete numerical objectives. Sections reporting on social initiatives were prepared from the perspective of communicating with the various stakeholders involved, and we have made every effort to report clearly on the relevance of such initiatives to the period covered by the report.
  • Reference materials used in the preparation of the report include Environmental Reporting Guidelines (Fiscal Year 2003 Version) and Environmental Accounting Guidelines 2005, issued by the Ministry of the Environment of the Government of Japan, and Sustainability Reporting Guidelines 2002, issued by the Global Reporting Institute.

Scope of Report

• Target organizations
  The report covers initiatives implemented by Otsuka Pharmaceutical Co., Ltd. during fiscal 2005. Organizations covered in the report include Otsuka Pharmaceutical Co., Ltd. corporate headquarters, sales offices, research facilities, and the six Otsuka Pharmaceutical Co., Ltd. factories that are primarily responsible for manufacturing for our pharmaceutical and consumer products divisions (Tokushima Factory, Second Tokushima Factory, Tokushima Wajiki Factory, Tokushima Itano Factory, Saga Factory and Takasaki Factory). Consolidated subsidiaries Otsuka Warehouse Co., Ltd. and Otsuka Beverage Co., Ltd. are also covered in the report.
• Period of the report
  Data in the report reflects actual results for the period from April 1, 2005 through March 31, 2006. Initiatives implemented immediately before or after this period may also be mentioned in the report.
• Publication
  October 2006 (subsequent report scheduled for publication in October 2007)